Although Bitcoin has recently shown signs of a rebound after a sharp decline, some caution is advised against interpreting this as a sign of a full-blown market recovery.
According to CoinGecko on the 9th (local time), Bitcoin recovered from its low of $62,000 last week to around $70,000. During the same period, the Coinbase Premium Index's negative range narrowed somewhat, indicating some easing of selling pressure on U.S. exchanges.
However, the market is focusing on the possibility that this price rebound is a result of a short-term position adjustment process rather than a new inflow of funds. Derivatives market data shows a decrease in open interest and an improvement in trading flow indicators, suggesting that the liquidation of existing positions may have influenced price movements.
Market analysts point out that there have been repeated instances in the past where prices rebounded briefly during periods of significant investor sentiment decline. They explained that this move also needs to be considered in light of the technical nature of the reaction to oversold conditions.
While improvements in some indicators are positive, some analysts believe that uncertainty regarding the overall market environment and macroeconomic variables remains. Consequently, the prevailing view is that it is difficult to conclude that the current rebound represents a sustained recovery in demand.
Meanwhile, some predict that further direction could be determined in the medium to long term based on changing market conditions. With the conclusion of major corporate earnings announcements and the burden of short-term events easing, the volatility of the digital asset market could vary depending on future macroeconomic indicator trends.
Experts generally agree that structural factors, such as improving the policy and institutional environment and long-term capital inflow, are necessary to ensure more stable market flows.
